Afreximbank has provided a loan of $20 million to Nigeria’s industrials and plastics manufacturer, Innoson Technical and Industrial Company.
ITIC, the biggest manufacturer of plastics products in Nigeria, will use the loan to buy raw materials from China and from the Eleme Petro Chemical Plant in Port Harcourt, Nigeria.
Afreximbank says the loan is aimed at boosting regional trade across West and Central Africa because the raw materials will be turned into finished plastic goods for sale in Nigeria and throughout the region.
Chief Innocent Chukwuma, executive chairman of ITIC, said that the Nigerian economy is one of the fastest-growing in Africa and with significant investments flowing in from international investors who were convinced about the strong promise of the country, the loan would strengthen ITIC’s position in Nigeria.
Nigeria is a major shareholder in Afreximbank and the bank disburses more than $1 bn dollars a year to private sector manufacturing in Nigeria.
The loan however, comes during turmoil in Nigeria as President Goodluck Jonathan has suspended Lamido Sanusi, the governor of Nigeria’s central bank amid allegations of multi-billion dollar fraud in the state oil company that had embarrassed the administration and inflamed public opinion.